|By Jay Elliott-Purdy||
|May 26, 2014 12:43 PM EDT||
Canadian Prime Minister Stephen Harper has been hard at work closing a deal with his South Korean counterpart President Park Geun-hye. And the agreement that the two leaders have been working on is the Canada-Korea Free Trade agreement. On the 11th March 2014 the free trade agreement was signed, sealed and delivered and it promises to eliminate 98% of duties on all goods between the two countries. This ground-breaking development has been over nine years in the making, and it offers Canadian investors a fantastic opportunity to tap into the rich South Korean market. For South Korea, this is but one of many massive free-trade agreements that the country has recently signed. Economic analysts point to the recent free-trade deals with the US, the EU and Australia.
How should Canadians feel about the Free Trade Agreement with South Korea?
Free-trade agreements typically provide cannon fodder to opponents of these agreements who worry that local industry will be severely impacted by the elimination of tariffs and duties between nations. Let's assume that a manufacturer in Ontario has been producing vehicles or heavy machinery for export to foreign countries and that tariffs and duties in Canada make imports from foreign countries competitively priced so that local industry can sustain itself. In the absence of tariffs and duties, foreign-produced vehicles - perhaps from South Korea - may in fact be cheaper than domestically produced vehicles, machinery, or equipment. Therein lies the dilemma in respect of free-trade agreements. Fortunately, various safeguards and clauses can be added to protect local industry.
In the US for example, President Barack Obama recently concluded the biggest free-trade agreement in the history of the US known as the Trans-Pacific Partnership (TPP). This free-trade agreement will allow the US to reposition itself as a major economic power in the Pacific, to counter China's growing influence in the region. Again, critics of this free-trade deal worry that the elimination of tariffs, duties and other taxes will make US industries vulnerable to foreign producers. However, the benefits of free-trade agreements are extensive. Since tariffs, duties and excise taxes are effectively eliminated the consumer gets to pay less for goods that are imported from the signatories of the free-trade agreement.
Free-trade deals lower costs for consumers; the trick is to protect local industry from job losses and lower levels of production. What is beneficial to Canada in this instance is that South Korea is a highly advanced country where GDP per capita is among the highest in the world. This means that labour costs, and production costs are similar to Canadian standards of living - so the discrepancies will not be as glaring as they might be if the free-trade agreement was concluded with China. The GDP per capita in South Korea is $24,328 (IMF figures for 2013) while the GDP per capita in Canada for 2013 is $51,989 (IMF figures for 2013).
Ways that Canadians will Benefit from the Free-Trade Agreement
Food producers will benefit immeasurably from this new deal. South Korean duties on seafood, beef and pork have traditionally been very high, but within 15 years they will be removed. Border taxes will also be eliminated on ice wine, lumber, liquefied natural gas, whiskey and the like. Now for more good news: Canada's gross domestic product is expected to rise by $1.7 billion. This is over and above the recent trade deal that was concluded with the European Union in October 2013.
More importantly, the expansionary policy being adopted by the conservative government in Canada is likely to lead to additional free-trade deals with other Asian Tigers like Japan. Unfortunately, Canada was unable to protect its automobile industry with retaliatory measures such as the snapback mechanism that the US negotiated in its free-trade deal with South Korea. There are ways for the South Koreans to make Canadian vehicles more expensive to the local market by imposing greater taxes on imports from Canada.
The 6.1% duty that is currently being levied on all Korean auto imports will all but disappear within 2 years of the finalized trade agreement. This will make South Korean vehicles significantly cheaper - thereby endangering domestic automobile manufacturers. A nifty clause has been included that allows Canada to impose tariffs if the number of South Korean vehicles gets too high.
Supporters of the free trade agreement with Canada/South Korea insist that the deal is far bigger than the automobile industry. The benefits to Canadians extend far and wide. Beef producers and pork producers are particularly pleased at the deal. Their only regret is that the Canadians were unable to negotiate a more rapid phasing out of tariffs in key sectors where Canadian exports are strong.
According to the Canadian government, the Canada-Korea free trade agreement is likely to create thousands of jobs and increase Canadian exports to South Korea by at least 32%. It is also Asia's fourth biggest economy valued at $1.1 trillion. The Canada-Korea Free Trade Agreement will make it possible for Canadian businesses to expand into South Korea and enjoy duty-free access on 81.9% of tariff lines in South Korea. Money saved is like cash in the bank!
Risk Disclaimer: Please ensure that you understand fully the risks involved and do not invest money you cannot afford to lose. The information provided can under no circumstances be considered as a recommendation to engage in any trade.
Our group of companies through its subsidiaries is licensed by the Cyprus Securities & Exchange Commission (CySEC, License Number 079/07), which has been passported in the European Union through the MiFID Directive and in Australia by ASIC (AFS license No. 246566).
Artifactory binary repository management system. As one of the most widely used binary repositories and the only repository that offers a high availability clustered solution, the integration with Artifactory helps customers easily adopt CA Release Automation to optimize their entire software development lifecycle. “Artifactory is a standard maker at the continuous-integration domain and provides the user a powerful repository experience with the freedom to choose his own tools set and ecosyste...
May. 5, 2015 07:45 PM EDT Reads: 470
This talk focuses on the application of DevOps fundamentals to include network infrastructure. It draws from real deployment case studies on the extension of today's paradigms to address the challenges of the network infrastructures' ability to seamlessly and cohesively integrate into agile workflows. In this session at DevOps Summit, Arista Networks will focus on configuration management using automation with a nod to future work necessary to include telemetry and ephemeral state information....
May. 5, 2015 04:45 PM EDT Reads: 1,128
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around...
May. 5, 2015 04:15 PM EDT Reads: 938
SYS-CON Events announced today that dcVAST, a leader in IT infrastructure management, support service and cloud service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. dcVAST provides cutting-edge IT services and IT infrastructure management services. dcVAST builds robust systems that are simple, secure and serviceable. dcVAST’s IT infrastructure support and IT services expertise can help companies r...
May. 5, 2015 04:02 PM EDT Reads: 609
DevOps Summit, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developmen...
May. 5, 2015 03:45 PM EDT Reads: 898
While Docker continues to be the darling of startups, enterprises and IT innovators around the world, networking continues to be a real mess. Indeed, managing the interaction between Docker containers and networks has always been fraught with complications. Without automation in networking, the vision of running Docker at scale and letting IT run the same apps unchanged on the laptop and in the data center or for any cloud cannot be realized.
May. 5, 2015 03:30 PM EDT Reads: 932
SYS-CON Events announced today Isomorphic Software, the global leader in high-end, web-based business applications, will exhibit at SYS-CON's DevOps Summit 2015 New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Isomorphic Software is the global leader in high-end, web-based business applications. We develop, market, and support the SmartClient & Smart GWT HTML5/Ajax platform, combining the productivity and performance of traditional desktop software ...
May. 5, 2015 03:00 PM EDT Reads: 840
The OnPage SOAP API provides programmatic access to OnPage messaging services. Typical applications include sending messages to individual OnPage users or groups and receiving tracking information for messages such as delivery and read timestamps or reply information. The API is based on open standards known collectively as "Web Services," which includes the Simple Object Access Protocol (SOAP), Web Services Definition Language (WSDL), and the XML Schema Definition language (XSD).
May. 5, 2015 02:37 PM EDT Reads: 351
SYS-CON Events announced today the DevOps Foundation Certification Course, being held June ?, 2015, in conjunction with DevOps Summit and 16th Cloud Expo at the Javits Center in New York City, NY. This sixteen (16) hour course provides an introduction to DevOps – the cultural and professional movement that stresses communication, collaboration, integration and automation in order to improve the flow of work between software developers and IT operations professionals. Improved workflows will res...
May. 5, 2015 02:30 PM EDT Reads: 3,396
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
May. 5, 2015 02:15 PM EDT Reads: 5,326
Ayla Networks, whose agile Internet of Things (IoT) platform makes it easy for manufacturers to deliver secure, connected products, today announced it has been included in the list of "Cool Vendors" in the Internet of Things report by Gartner, Inc. “Gartner knows how important it is that manufacturers of all kinds of products have the right IoT solution to help turn their products into connected ‘things,’” said David Friedman, CEO and co-founder of Ayla Networks. “The market for Ayla’s IoT pla...
May. 5, 2015 02:00 PM EDT Reads: 502
A new definition of Big Data & the practical applications of the defined components & associated technical architecture models This presentation introduces a new definition of Big Data, along with the practical applications of the defined components and associated technical architecture models. In his session at Big Data Expo, Tony Shan will start with looking into the concept of Big Data and tracing back the first definition by Doug Laney, and then he will dive deep into the description of 3V...
May. 5, 2015 02:00 PM EDT Reads: 1,140
SYS-CON Events announced today that CenturyLink, Inc., a leader in the network services market, has been named “Platinum Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. CenturyLink is the third largest telecommunications company in the United States and is recognized as a leader in the network services market by technology industry analyst firms. The company is a global leader in cloud infrastructure and ...
May. 5, 2015 01:15 PM EDT Reads: 1,285
ScriptRock has been included in the list of "Cool Vendors" in the "Cool Vendors in DevOps 2015" report by Gartner, Inc.* ScriptRock provides visibility into the configuration state of an organization's IT environments, enabling the continuous delivery of mission critical services. For enterprises where downtime is not an option, ScriptRock's system-wide overwatch offers the assurance that misconfigurations and anomalies are caught before they affect the business. By satisfying this fundamental ...
May. 5, 2015 12:15 PM EDT Reads: 771
As cloud gives an opportunity to businesses to buy services externally – how is cloud impacting your customers? In his General Session at 15th Cloud Expo, Fabio Gori, Director of Worldwide Cloud Marketing at Cisco, provided answers to big questions: Do you see hybrid cloud as where the world is going? What benefits does it bring? And how does Cisco connect all of these clouds? He also discussed Intercloud and Cisco’s investment on it.
May. 5, 2015 12:00 PM EDT Reads: 5,155